TCU must warn government about risks of spending outside the spending ceiling

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The Federal Court of Auditors (TCU) should alert the government of President Jair Bolsonaro to technically support the need to open extraordinary credit, that is, to cover expenses outside the spending ceiling, to pay benefits and pensions from the National Institute of Social Security ( INSS).

The Chief Minister of the Civil House, Ciro Nogueira, sent a consultation to the TCU last Thursday (1st) about the possibility of Bolsonaro signing a provisional measure to cover expenses outside the rule that links the growth of expenses to inflation in this year. The measure is authorized by the Constitution only for unpredictable and urgent situations.

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The government points out the need to increase the Union’s mandatory expenses by R$ 22.3 billion in 2022, of which R$ 13.7 billion would represent the lack of resources to pay retirement and social security pensions.

The government alleges an extraordinary increase in demand for social security benefits due to the pandemic and points to risks for the proper functioning of the INSS. The economic team asked for the relocation of amendments to the secret budget to fund part of the hole, but Congress does not accept to deliver the resources of interest to parliamentarians.

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As per the Estadão revealed, President Jair Bolsonaro ordered the suspension of payment of secret amendments after allies negotiated a composition with President-elect Luiz Inácio Lula da Silva. The amendments were already blocked, but the order at the Planalto Palace is not to pay anything until the end of the year. Congressional leaders, however, do not accept running out of funds.

Faced with Congress’ resistance to giving up the secret budget, an alternative for the government is for Bolsonaro to sign a provisional measure to pay for mandatory spending.

Experts point to impasses in the strategy, as these expenses are already foreseen in the Budget and the government would need to prove that the increase was unpredictable. On previous occasions, the Executive made the move, canceling other expenses with Congressional authorization, but now alleges lack of time, as the deadline set by law for sending this type of project has expired.

The information is from the newspaper The State of S. Paulo.

Source: CNN Brasil

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